NEW YORK, March 25 2005 – LAWFUEL – The Law News Network — Zwerling, Schachter & Zwerling, LLP (“Zwerling Schachter”) has filed a class action lawsuit in the United States District Court for the District of New Jersey on behalf of all persons and
entities who purchased the common stock of Audible, Inc. (“Audible” or the
“Company”) (Nasdaq: ADBL) during the period from November 2, 2004 through
February 15, 2005 (the “Class Period”). The deadline to file a motion seeking
to be appointed lead plaintiff is April 25, 2005.
If you purchased the common stock of Audible during the period from
November 2, 2004 through February 15, 2005, you may apply to serve as lead
plaintiff. The lead plaintiff is responsible for overseeing the prosecution
of the action and ensuring that the interests of the class are protected. You
may apply to be appointed lead plaintiff through Zwerling Schachter.
If you wish to discuss this action or have any questions concerning your
rights and interests with respect to this securities litigation matter, please
contact Zwerling Schachter (Shaye J. Fuchs, Esq. or Jayne Nykolyn) at
1-800-721-3900 or by e-mail at sfuchs@zsz.com or jnykolyn@zsz.com.
The complaint alleges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Specifically, it alleges that the defendants failed to disclose and
misrepresented the following material adverse facts which were known to
defendants or recklessly disregarded by them that: (1) Audible’s growth could
not be maintained without material investments in strategic initiatives, (2)
Audible intended to pursue these cash-intensive business initiatives; (3)
Audible’s strategy, through these initiatives, would severely undermine
Audible’s future margins and earnings; and (4) as a consequence of the
foregoing, Audible’s plan for aggressive expansion posed a substantial risk to
the future stability of the Company and on the price of its common stock.
On February 15, 2005, after the close of trading, the Company announced
initiatives requiring substantial investments in infrastructure, new business
units and marketing, among other areas, that would materially reduce its
earnings and cash flow for the foreseeable future. On this disclosure, the
price of the Company’s common stock fell approximately 35% to $17.32 per
share.
Zwerling Schachter concentrates in prosecuting class actions nationwide on
behalf of investors. The firm currently plays a leading role in numerous
major securities and complex commercial litigations pending in federal and
state courts and has offices in New York City, Uniondale, New York, Boca
Raton, Florida and Seattle, Washington. The firm has been recognized by
courts throughout the country as highly experienced and skilled in complex
litigation, particularly with respect to federal securities class action
litigation.
